New Delhi: The Reserve Bank of India on Thursday imposed a moratorium on Yes Bank, restricting the withdrawal of deposits to Rs 50,000 for a period till April 3, 2020.

Any withdrawal over the amount will require the permission of the RBI.The moratorium will be applicable from 1800 hrs on March 5 to April 3, 2020.The RBI also said that it is superseding the board of the YES Bank with immediate effect.Former State Bank of India CFO Prashant Kumar has been appointed the administrator.

As per a notification by the RBI, Yes Bank will not be allowed to pay depositors a sum exceeding Rs 50,000/- lying in any savings, current or any other deposit account.The restrictions in the withdrawal of deposits will be subject to certain conditions.

RBI may, by a general or special order, permit the bank to allow withdrawal of over Rs 50,000 in some unforeseen circumstances- in connection with the medical treatment of the depositor or any person dependent on him; towards the cost of higher education of the depositor or any person dependent on him for education in India or outside India.

To pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person dependent upon him and - in connection with any other unavoidable emergency.

In a statement, the RBI said, the financial position of Yes Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits.

''The bank has also experienced serious governance issues and practices in recent years, which have led to a steady decline of the bank,'' the RBI said.

RBI said it has been constantly engaging with the bank's management to find ways to strengthen its balance sheet and liquidity and the management had indicated that various investors had been approached and were likely to come on board.

''However, in the absence of a credible revival, the RBI has come to the conclusion that, in the interest of the bank's depositors, it had no alternative but to apply to the Central Government for imposing a moratorium under section 45 of the Banking Regulation Act, 1949.

Accordingly, the Central Government has imposed moratorium effective from today, restricting the withdrawal of deposits to Rs 50,000, RBI said in the release,'' the RBI said.

In another notification, it said that it is superseding the board of troubled private sector lender YES Bank with immediate effect.Former State Bank of India CFO Prashant Kumar has been appointed the administrator.

"This has been done to quickly restore depositors' confidence in the bank, including by putting in place a scheme for reconstruction or amalgamation," the RBI said in a statement.(UNI)